Telematics costly for small fleets

May 1, 2003
A recent report says truck security systems based on advanced telematics technology will be too expensive, at least initially, for smaller fleets. Issued by Allied Business Intelligence, Fleet Management Systems: Exploring Global Market Opportunities, Trends and Technologies in Commercial Telematics projects that the market for on-vehicle hardware will grow from $2 billion in 2002 to over $6 billion

A recent report says truck security systems based on advanced telematics technology will be too expensive, at least initially, for smaller fleets.

Issued by Allied Business Intelligence, “Fleet Management Systems: Exploring Global Market Opportunities, Trends and Technologies in Commercial Telematics” projects that the market for on-vehicle hardware will grow from $2 billion in 2002 to over $6 billion by 2008.

Security applications such as remote vehicle shutdown systems and biometric identification of drivers will help fuel that growth, but will “lie outside the cost threshold of most small fleet operators.” One solution might be government subsidies to help finance such systems, at least for haz-mat and other high-risk carriers, according to the report.

The study also predicts a short-term rise in telematics hardware costs as communications providers move to multi-mode systems mixing satellite with analog and digital cellular networks.

However, “current hardware development efforts should deliver lower hardware cost,” perhaps as soon as the end of the year, the report says.

www.alliedworld.com.

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